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Result Energy Inc. announces closing of $3.275 million Convertible Debenture Financing
Result Energy Inc. announces closing of $3.275 million Convertible Debenture Financing.
About this update from Route 109 Resources Inc.
[{"type":"text","content":"\n\n\n\n\nCALGARY, Sept. 19 /CNW/ - Result Energy Inc. (\"Result\", TSX Venture:RTE)\nis pleased to announce that it has closed a private placement offering of\nconvertible debentures (the \"Financing\") for gross proceeds of $3.275 million\n($3,127,500 net of commissions). Completion of the Financing is subject to\nreceipt of final regulatory and stock exchange approvals, and the securities\nissued will be subject to a hold period until January 14, 2007. Finders fee\ncommissions totalling $147,500 were paid at closing to four broker agents who\nwere involved in the Financing, in which directors and officers of Result\nsubscribed for $225,000 of the proceeds. Proceeds from the Financing will be\nused for general corporate purposes, and to supplement working capital.\nThe convertible debentures will bear interest at prime + 3%, are due\nFebruary 28, 2008, and are convertible at the option of the holder into Result\ncommon shares at $1.15 per common share. Commencing 12 months after Closing,\nthe convertible debentures will be (1) repayable in cash at Result's option,\nsubject to the Debenture holder's prior right to convert, and (2) in the event\nthat Result's common shares trade at $1.35 or above for a period of\n20 consecutive trading days, Result shall have the option to require\nconversion to common shares of Result at the Conversion Price.\nAfter much longer than expected non-controllable delays, in the month of\nAugust Result brought two shut-in gas well projects at Pembina and Clear Hills\non-stream. Although production from these projects has not yet been brought up\nto full capacity, field estimated production levels, net to Result, are\ncurrently at approximately 1,020 boe/d, with estimated additonal production\ncapacity of approximately 350 boe/d not yet on stream from these two projects.\n\nResult is a publicly traded Canadian energy company involved in the\nexploration and development of oil and gas properties in western Canada.\nResult's three core areas are in the Peace River Arch region of Alberta, the\nPembina area in central Alberta, and south-west Saskatchewan.\n\nInvestors are cautioned that this news release may contain forward\nlooking information. Such information is subject to known and unknown risks,\nuncertainties and other factors that could influence actual results or events\nand cause actual results o...